More and more marketers prefer email marketing over other channels. But why? What are the email marketing ROI statistics?
With an ROI of between $35 and $42 for an investment of every single dollar, email marketing dominates the other marketing mediums.
Why Email Marketing ROI Should Matter to You?
Key Email Marketing Statistics
- For every dollar you invest, the email yields $42.
- Around 60% of the email opens occur on mobile devices.
- Around 64% of small-sized companies use email marketing to reach their clients.
- Email marketing is a go-to marketing channel for 82% of marketers worldwide.
- 99% of those who use email check it daily.
- Creating email lists and deploying email campaigns elevates income by 760% for professional marketers.
Today’s marketers understand that email marketing and ROI go side by side. And the stats here will demonstrate how:
- Email marketing ROI is 3600% since it creates $36 for every dollar spent. Also, 18% of businesses see a return on email marketing investment of more than $70 for every $1 spent.
- According to 59% of marketers, email is more than twice as efficient at producing leads than PPC and paid social media.
- Given that the average click-through rates for all channels were the same, email marketing attracted 40 times more clients than Facebook and Twitter combined:
- Twitter – 0.03%Facebook – 0.07%
- Email Marketing – 3.57%
The top four opportunities for small businesses to build brand awareness are paid media, email marketing, content marketing, and paid media.
Email marketing comes in second; it may come first over the years. So, if you’re still unsure how, then the detailed email marketing ROI statistics may help you understand better.
Surprising Email Marketing ROI Statistics
1. Marketers Generate Around $42 For Every Dollar They Invest in Email Marketing
[Source: Litmus]
That is an ROI of 4,200%! Email marketing is king because it outperforms other marketing tactics in terms of ROI. This ROI may possibly be higher, depending on the sector.
2. Email ROI Surges From 30:1 To 42:1 When There Are 3-5 Employees In a Marketing Team
[Source: Litmus]
It would appear that the size of your email marketing staff may impact your ROI. A 30:1 email ROI is typical for teams of two or fewer.
However, this figure increases to a 42:1 ratio after the team reaches three to five full-time workers.
3. Average Email CTR (Click-Through Rate) In 2021 Was More Than 15%
[Source: Barilliance]
Since email marketing is so good at encouraging sales, brands tend to utilize it exclusively. The average click-through rate for email conversions in 2021 was 15.2%.
This rate has been declining since it peaked in 2018, when it was converted to over 18.4%. Despite the modest decline, email marketing is still a powerful and dependable strategy in 2023.
4. When It Comes To Email ROI Tracking, Only 25% of Companies Think They’re Doing It Properly
[Source: Litmus]
Given that most businesses lack confidence in their capacity to manage and measure email ROI, it may be challenging to get a genuine average.
Only 13% of respondents asserted to be “well” or “very well” analyzing their email ROI. A startling 50% acknowledged assessing ROI “poorly,” “very poorly,” or “not at all.”
5. Email ROIs Are Higher (41:1) For Large-Sized Companies With More Than 500 Employees
[Source: Litmus]
The email ROI increases with company size. Companies with 500+ employees had a 41:1 email ROI in 2020, down from a 47:1 ROI in 2019.
Companies with 100–499 people had a ROI of 40:1 in 2019, but their ROI decreased by roughly 28% the following year.
Why, then, do small businesses experience lower email ROIs? It’s presumably because 40% of marketers say their resources are inadequate.
P.S.: If yours is a small business, do check out my guide on Email Marketing for Small Businesses.
6. About 19.8% of ALL Transactions come from Email Marketing
[Source: Barilliance]
A referenced study found that emails were the starting point for almost 20% of all transactions. Paid search came in second with 19.9%, followed by organic traffic with 21.8%.
7. The Highest Email ROI Was Generated By Sending 9 to 16 Emails Every Month
[Source: Litmus]
Your ROI immediately suffers if you send too few or too many emails. A study says 9 to 16 emails every month is the golden spot.
This frequency gave an astonishing 46:1 ROI. With an ROI of 13:1, sending just one email each month was the lowest. The ROI increased to 31:1 by sending two to four emails monthly.
So, here is a listicle for simpler understanding:
- If you send 9-16 emails monthly, the ROI will be 46:1.
- For 2-4 emails every month, the ROI will be 31:1.
- And for one email every month, the ROI will be 13:1.
Note: The two statistics below are associated with the email marketing open rate. This is related to the ROI, as the higher the open rate, the higher the conversions and ROI.
8. On Average, Email Marketing Open Rate Globally Stands To Be 18%
[Source: Statista]
Only around 20% of people open and glance at the emails they receive in their inboxes. While the average email marketing click-through rate for this is 2.6%, the open rate is 14.1%.
Meanwhile, the unsubscribe rate stands at 0.1%.
9. The Highest Email Marketing Open Rate (82%) Comes From ‘Welcome’ Emails
[Source: Oberlo & Barilliance]
“Back in Stock” reminders, which inform customers when a sold-out item has been refilled, have been shown to have the second-highest reported email open rates.
They prompt more than 65% of recipients to view the email, outperforming the email campaign type that performs the worst (post-purchase mailings) by almost 70%.
Email Marketing ROI Statistics: Based On Industry
Here are the statistics for email marketing across different industries:
- Retail industries’ high ROI may result from their measurable CTAs, intended to spur rapid transactions and make email marketing’s ability to influence those purchases easier to measure. [Source: Litmus]
- Since personnel had to interact during the COVID period, the education sector also had among the highest involvement rates. [Source: CampaignMonitor]
Additional Email Marketing ROI Statistics
The Data & Marketing Association has found a few other significant email marketing ROI stats even though their database contains many automated triggered emails.
These stats are as follows:
- Nearly 18% of companies generate $70 for every dollar they invest in email marketing.
- Only 20% of marketers perform poorly, generating only $5 for every dollar they spend.
- About 36% of all email sales revenue comes from personalized emails.
- Campaigns with triggered emails produce 306% more click-throughs per email than campaigns without triggered emails.
Breaking Down the $42 ROI Phenomenon of Email Marketing
If you’re looking for these statistics and wondering where you’re going wrong, you don’t have to worry. Things take time, and with the tips below, you can boost your email marketing ROI in no time:
1. Use Only Interactive & Engaging Emails
The State of Marketing Report 2021 reveals that 23.7% of advertisers noticed an increase in their conversions by 10% with AMP emails since they eliminated friction for customers.
2. Run A/B Tests
Marketers who leverage A/B testing generate $42 for every dollar they invest. Meanwhile, marketers who don’t use it only manage to generate $21.
So, evaluate your presumptions, build on what is effective, and do away with what is not.
3. Go For Email Automation
One small business saw an 86% increase in conversions because of email automation.
This comes as no surprise because automation enables organizations to save time and use it to invest in other areas that increase ROI.
4. Go For Email Personalization
Studies show that customized emails have a 6 times higher conversion rate.
So, you can start by customizing the subject line of your emails before constructing email segments and delivering them at the most advantageous times for you.
5. Do Not Waste Resources & Time With Uninterested Users
16.97% is the overall average open rate across all industries. So, about 83% of users never open emails sent by companies. This occurs as a result of incorrect audience targeting.
To eliminate unwanted users from your list, be aware of your ICP.
The Market Will Weed You Out if You Don’t Adapt!
So, this concludes the guide to the top email marketing ROI statistics for 2023.
With these research and study-backed statistics, marketers should find it easy to maximize their efforts, boost ROI, and better depict their value to brands worldwide.
Marketing strategies change over time. Those who do not keep themselves updated with the trend are weeded out eventually.
However, the stats here prove that email marketing is here to stay for the long haul.
References:
- https://www.luisazhou.com/blog/email-marketing-roi-statistics/
- https://www.mailmodo.com/guides/email-marketing-roi-statistics/
- https://www.barilliance.com/email-marketing-statistics/
- https://blog.hubspot.com/marketing/email-marketing-stats
- https://www.oberlo.com/blog/email-marketing-statistics
- https://snov.io/blog/email-marketing-statistics/